Focus on what counts
Insights

Estates, Gifts and Trusts

November 15, 2017
view all archive

The landscape of tax reform continues to change, with further mark-ups, compromises, and changes occurring in the near future. But we believe it important to communicate to you where we are now. Below is a detailed comparison of the Senate proposed tax legislation (released on November 13, 2017) as compared to the House proposed tax legislation, which includes mark-ups.

Topic

House Bill (H.R. 1)

Senate Plan

Estate and Gift Taxes

The bill would increase the federal estate and gift tax unified credit applicable exclusion amount to $10,000,000 (as indexed for inflation), effective for decedents dying and gifts made after 2017. The bill would repeal the federal estate tax, effective for estates of decedents dying after 2023. The bill would lower the federal gift tax rate from 40% to 35%, effective for gifts made after 2023. The bill retains the “step-up” in basis for assets passing from a decedent’s estate, even after repeal.

The plan would increase the federal estate and gift tax unified credit basic exclusion amount to $10,000,000 (with inflation adjustments from 2011), effective for decedents dying and gifts made after 2017.

 

The plan does not provide for a repeal of the estate tax at any point in the future.

Generation-Skipping Transfer Tax

The bill would increase the federal GST exemption amount to $10,000,000 (as indexed for inflation), effective for generation-skipping transfers made after 2017. The bill would repeal the federal generation-skipping transfer tax, effective for generation-skipping transfers made after 2023.

The plan would increase the federal GST exemption amount to $10,000,000 (with inflation adjustments), effective for generation-skipping transfers made after 2017.

 

The plan does not provide for a repeal of the generation-skipping transfer tax at any point in the future.